The changes to the PIP coverage system could make it harder for injured people to pay their medical expenses.
The state legislature is currently facing a decision that would alter the New Jersey auto insurance laws, in an effort to control the rapidly increasing costs to the insurers.
Unfortunately, at the same time, these alterations to the regulations risk causing those who are injured in car accidents to find themselves being denied critical medical care coverage. At the moment drivers in the state are required to have vehicle coverage that will include a minimum of personal injury protection (PIP) and property damage liability. The PIP is what makes sure that those who are injured in a crash will be able to receive payments to cover the related medical costs, no matter who caused the accident to happen.
The coverage provided by PIP varies with the specific New Jersey auto insurance policy purchased.
Typically speaking, it will fall within the range of $15,000 to $250,000 per person, per collision. The higher limit is usually the result of severe injuries such as in the event of a major spinal cord or brain injury.
Unfortunately, the current system for PIP coverage is also highly vulnerable to fraud, and some of the lawmakers in the state are now being forced to look into different ways to reduce the expenses associated with this coverage by implementing tougher caps to the amount that medical facilities are allowed to charge for care.
This choice has caused significant backlash from doctors, who believe that the limitations will make it virtually impossible for them to provide the necessary care to individuals who have been severely injured in a vehicle accident. As a result lawmakers have stepped back from the caps that would apply to spinal outpatient and other back related care.
Following that success, doctors have now taken on the battle to prevent limitations from being put into place for New Jersey auto insurance for the coverage of treatments involving pain medication, as they are considered to be a critical element of treatments for people who are suffering chronic pain as a result of the crash.